Can I Refile Chapter 13 After Dismissal?
Helping you rebuild financial freedom
Having a Chapter 13 bankruptcy case dismissed can leave you feeling vulnerable to immediate creditor actions and financial uncertainty. However, a dismissal does not necessarily mean you are out of options or unable to seek relief again.
This guide explains how the refiling process works, the rules regarding the automatic stay, and what you must do to successfully submit a new repayment plan.
Understanding the Causes, Consequences, and Options After a Chapter 13 Dismissal
Refiling Chapter 13 bankruptcy after dismissal is possible, but it has specific rules and considerations. A dismissed case does not have to mean the end of your debt relief options. The timing of your bankruptcy filing can significantly impact the success of your case.
A Chapter 13 dismissal happens when a bankruptcy case is closed without completing the repayment plan. This can occur if you miss payments, fail to file required documents, or do not meet court deadlines.
If you refile within one year of dismissal, the automatic stay protecting you from creditors will only last 30 days. You can file a motion to extend this stay, but you need to explain to the judge why this second filing should be allowed.
The reason your bankruptcy case was dismissed matters.
For instance, if the bankruptcy court dismissed it for non-payment, addressing the underlying financial issues is crucial before refiling.
It’s important to note that the court may view repeated filings unfavorably. They could limit your ability to file for bankruptcy relief in the future. You should be prepared to provide the bankruptcy court with updated financial information and information about changes in your circumstances and demonstrate your ability to complete the new bankruptcy plan.
The Reasons for Chapter 13 Dismissal
Chapter 13 bankruptcy dismissal occurs when the court or the debtor terminates a case before completion of the bankruptcy plan, also known as “involuntary and voluntary dismissals.”
Common causes of involuntary dismissal include:
Failing to make timely payments to the Chapter 13 bankruptcy trustee.
Not submitting the required documents.
Not adhering to the approved repayment plan.
Bankruptcy courts may also dismiss cases if debtors engage in fraud or fail to attend the creditors’ meeting.
When a Chapter 13 case is dismissed, the automatic stay that protects debtors from creditor actions is lifted. This means creditors can resume collection efforts, including wage garnishments, repossessions, and foreclosures.
Additionally, dismissal can have significant financial consequences.
The debtor loses the opportunity to reorganize debts and may face immediate demands for payment from creditors. Furthermore, a dismissed bankruptcy can negatively impact credit scores.
Debtors facing potential dismissal should act quickly. Filing a motion to reinstate the case or requesting a hearing to explain any difficulties can sometimes prevent dismissal. In some cases, converting to a Chapter 7 bankruptcy might be a viable alternative.
Steps To Refile Chapter 13: Eligibility and Considerations
Refiling Chapter 13 bankruptcy requires careful planning and attention to detail. Your bankruptcy lawyer can help you understand the requirements under the bankruptcy code, eligibility, and steps to file for bankruptcy.
Reviewing your previous case is crucial when refiling for Chapter 13 bankruptcy.
Step 1: Reason for Dismissal
You will first need to identify the reason for dismissal. This may involve examining court documents and discussing the case with your attorney. You should gather all necessary documentation, including financial records, tax returns, and proof of income.
Step 2: Complete the Required Credit Counseling
Before you file, you must complete a credit counseling course from an approved provider. This is a federal rule. It applies every time you file, not just the first time. The course takes about one hour. You will receive a certificate, and you need to file it with your case.
Step 3: File the Petition and Pay the Filing Fee
You file your new Chapter 13 petition with the U.S. Bankruptcy Court for the Northern District of Georgia. Most Metro Atlanta cases go through the Atlanta Division. The filing fee is $313.
Step 4: New Repayment Plan
You need to file a new repayment plan within 14 days of filing your petition. Your plan shows how you will pay back creditors over 3 to 5 years.
Developing a new repayment plan is the next critical step. Requirements include demonstrating changes to your proposed repayment plan that address the issues from your previous case. You also need to provide a feasible budget that shows your ability to make plan payments.
You need to ensure the plan is realistic and manageable based on your current financial situation. This may involve adjusting your expenses or finding ways to increase your income.
Step 5: Filing a New Petition
You need to submit a new bankruptcy petition with accurate and complete information. This includes updating your financial disclosures, listing all creditors, and providing a detailed budget. Pay close attention to deadlines and filing requirements to avoid potential issues.
Step 6: Attend the 341 Meeting of Creditors and Confirmation Hearing
About 3 to 6 weeks after filing, you attend a 341 meeting. Roughly 45 to 90 days after filing, the court holds a confirmation hearing. The judge reviews your repayment plan. If no objections are raised and the plan meets legal requirements, the court confirms it.
Once confirmed, your plan is binding. You start making monthly payments to the trustee.
Step 7: Complete the Plan and Get Your Discharge
Once you finish the plan, the court discharges any remaining eligible debt.
Eligibility To Refile Chapter 13
Generally, there’s a 180-day waiting period after a dismissal. It only applies if the court finds a specific reason to bar you (like failing to follow court orders or willfully avoiding the process), or if you dismissed it voluntarily following a creditor's motion
Dismissals due to failure to appear in court or comply with orders may have longer waiting periods.
You should also be prepared to explain to the court why this new bankruptcy case is likely to succeed where the previous one failed. This might include changes in your financial situation or a more realistic approach to debt repayment.
Potential Challenges and How To Overcome Them
Refiling Chapter 13 after dismissal can present several hurdles for filers. Dismissal of the first bankruptcy case can lead to consequences that complicate the second filing and create additional financial challenges.
Automatic Stay
Clients might struggle with the automatic stay limitation. If you refile within a year, the stay only lasts 30 days. To extend the stay, you can file a motion explaining why this filing is in good faith. You’ll need to show how your circumstances have changed since the previous dismissal. Two dismissals in one year may mean no automatic stay at all.
Missed Payments
Missing payments is a common issue. Setting up automatic withdrawals can ensure timely payments. If you face unexpected financial setbacks, it’s essential to communicate with the bankruptcy trustee immediately.
Creditor Action
Creditors may become more aggressive after a dismissal. Your attorney can help negotiate with them to prevent foreclosures, repossessions, or wage garnishments while we prepare to refile.
Credit Rating
Your credit rating will likely take a hit after a dismissal. Moreover, the dismissal record will stay on your credit reports for up to 10 years.
Bankruptcy Court Concerns
The court may question your ability to complete a new plan. A skilled bankruptcy attorney can help you create a modified, realistic budget that demonstrates your commitment and financial stability. In some cases, conversion to Chapter 7 might be a better option. Your counselor can help you determine a path forward.
When to Talk to an Attorney About Refiling Chapter 13
If your Chapter 13 case was dismissed, speaking with an attorney right away can help you understand your options and any applicable filing deadlines. At Cherney Law Firm, LLC, we help Georgia residents navigate the rules on refiling and determine the best next step.
Reach out to our team to schedule a free initial consultation and get clarity on your situation.
Frequently Asked Questions
Yes. In most situations, you can refile a new Chapter 13 bankruptcy even if your prior case was dismissed. The ability to refile depends on the reason for the dismissal, any applicable restrictions, and whether you meet eligibility requirements again.